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Occupational Choice and Changes in the Wage Structure

Author

Listed:
  • Christopher Taber

    (University of Wisconsin-Madison)

  • Nicolas Roys

    (University of Wisconsin - Madison)

Abstract

This paper proposes and estimates a model of occupational choice with time-varying skills prices and heterogeneous human capital to understand the evolution of the wage structure since 1979. A worker's multi-dimensional skills are exploited differently across different occupations. We allow for a rich specification of technological change which has heterogenous effects on different occupations and different parts of the skill distribution. We estimate the model combining three datasets: (1) O'NET, to measure skill intensity across occupations, (2) NLSY, to estimate life-cycle effects, and (3) MORG CPS, to estimate technological shifts.

Suggested Citation

  • Christopher Taber & Nicolas Roys, 2015. "Occupational Choice and Changes in the Wage Structure," 2015 Meeting Papers 656, Society for Economic Dynamics.
    • Handle: RePEc:red:sed015:656
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